Tag Archives: islamic banking

It is important to note that the very idea of Islamic banking and promoting it as a parallel to conventional banking – which is being portrayed as un-Islamic – and which has caught the imagination of a section of god-fearing Muslims, is a clear manifestation of shifts in Muslim politics over the world.

Image for representational use only.Image Courtesy : Business Today

Afzal Pasha, a 55-year-old labourer, is dead. He died of a heart attack a few days back.

The news that the attractive scheme in which he had invested his life’s savings worth Rs 8 lakh went bust proved unbearable for him.

While Afzal’s tragic death could catch headlines, we will never know the plight of the thousands of investors – all of them belonging to the Muslim community – who had similarly invested their hard-earned savings in the said investment scheme launched by Mohammed Mansoor Khan in 2006 through his firm I Monetary Advisory (IMA).

The scheme was declared ‘Shariah-compliant’ and worked on ‘“no interest” policy of Islamic banking. A section of the clergy had even certified this scheme as “halal”, which means “lawful” or “permitted” in Arabic, which helped it easily earn the trust of the Muslim community. Small investors from across the state of Karnataka had flocked to it with their investments ranging from a few thousand rupees to a few lakhs.

A few days back, the promoter of IMA just disappeared from Bengaluru and is supposed to have fled to Dubai.

Faith based banking in a country which has secularism enshrined in its constitution ! Does not it sound anachronous ?

Well, as far as the present dispensation at the centre led by BJP is concerned – which has an altogether different take on secularism – it does not seem to think so. And that’s why it has gladly accepted the proposal by the Saudi Arabia based Islamic Development Bank (IDB) – an international investment organisation – to start its operations here. In fact this proposal is considered a positive outcome of PM Modi’s visit to Saudi Arabia sometime back.( April 2016) Although a date has not been announced when the Bank would start its operations here, all the formalities regarding its launching have been completed and even the city for its first branch in India has been identified. Ahmedabad would see the first branch of this Bank. Continue reading Islamic Banking in India – For Financial Inclusion of Muslims or to squeeze them further ?→